Business Formula - Analysing Performance Flashcards
Current Assets
Inventories + receivables + cash and other equivalents
Working Capital or Net current assets
Current assets - current liabilities
Assets Employed
net current assets +non-current assets
Net assests
Non-current assets +working capital - non-current liabilities
Total equity
share capital + reserves
Earnings per share
profit for the year / shares issued
Capital employed
total equity + non-current liabilities
ROCE (Return on capital employed)
Operating profit or Profit before tax / (total equity +non-current liabilities) x 100
Current ratio
Current assets / current liabilities
Payables days
(payables / cost of sales) x 365
Receivables days
(receivables / annual revenue) x 365
Inventory turnover
Cost of goods sold / average inventory held
ARR
(total net return + surplus from project / time period) / initial cost x 100
